Jacobs Q1 2026 Earnings Soar: What Does Record Backlog Mean for Aviation?

Jacobs Solutions (J) delivered strong Q1 2026 earnings results. Adjusted Earnings Per Share (EPS) grew 15% to $1.53. This was supported by over 8% net revenue growth.

The company’s consolidated Jacobs Solutions backlog hit a record $26.3 billion. This marks a substantial 21% increase year-over-year. Its quarterly book-to-bill ratio rose to 2.0 times. This indicates strong future revenue conversion. CEO Bob Pragada cited this momentum. It gives confidence to raise the full-year 2026 outlook.

Critical Infrastructure and Aviation Growth

The Infrastructure & Advanced Facilities (INAF) segment performed well. Critical Infrastructure net revenue grew 8% in the quarter. This growth was robust across transportation. It was particularly strong in rail and aviation.

Major Airport Modernization

A key award highlights this aviation strength. Jacobs was selected for a $1.6 billion program. This is the modernization of Cleveland Hopkins International Airport (CLE). Jacobs will lead program and construction management. This project, called CLEvolution, modernizes aging facilities. It will improve passenger flow at Ohio’s busiest airport. Jacobs is ranked as a top aviation engineering firm. Management sees significant demand for terminal upgrades. This includes new builds and digital implementation. International business revenue also grew over 9%. This reflects strong tailwinds in global transportation.

Digital Capabilities and PA Consulting

Jacobs announced plans to fully acquire PA Consulting. This is the remaining stake in the company. PA Consulting’s operating profit rose 27% in Q1. Its strong 24% margin was driven by digital consulting.

Management views PA Consulting as a force multiplier. It accelerates the strategy to redefine the asset life cycle. This includes AI advisory and digital twin technology. AI platforms enable both top-line growth and efficiency. This is crucial in a resource-constrained market. Predictive analytics, like the Acuity platform, are deployed. They help manage field-level issues in real time. This differentiation is driving higher award rates.

Financial Outlook and Capital Strategy

The company raised its fiscal year 2026 guidance. Net revenue growth is now forecast at 6.5% to 10%. Adjusted EPS guidance is $6.95 to $7.30. This implies over 16% year-on-year growth at the midpoint.

Jacobs also increased its quarterly dividend by 12.5%. It accelerated share repurchases during the quarter. Management targets returning at least 60% of free cash flow to shareholders. Free cash flow was strong at $365 million in Q1.

The PA Consulting acquisition will temporarily increase leverage. However, Jacobs Solutions expects deleveraging within a year. The deal is expected to be accretive to adjusted EPS. Cost synergy targets are set at $16 million to $20 million.

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